Negotiation is both an art and a science. While strategies and tactics are critical, the underlying human element often determines the negotiation’s success or failure. Central to this human element is trust, an often misunderstood yet potent force in the realm of negotiation.

The Trust Framework

Mike Lander, a seasoned procurement and negotiation expert, offers invaluable insights into the intricacies of trust in negotiation. He emphasizes that building a trusting and collaborative relationship is paramount. But how do you foster trust, especially with procurement professionals trained to be emotionally detached?

Lander recounts, “A very good friend of mine, Matthew, many, many years ago said this to me. He said, ‘The moment you get emotionally attached to an outcome, you’ve lost the negotiation.’” This axiom is particularly relevant on the procurement side, where emotional detachment is ingrained in their training.

To comprehend the construction of trust, Lander refers to a seminal piece of work known as the Trust Equation by David Maister. The equation is straightforward yet profound:

Trust = (Credibility + Reliability + Relationship) / Self-Interest.

This formula reveals that the less self-interested you appear, the more trust you garner, and vice versa. Let’s break down these components:

1. Credibility: This is the foundation. Without domain expertise or credible information, gaining trust is nearly impossible. As Lander puts it, “If you’re not credible, if you’re not a domain expert and they’re short on time, why would they listen to you?”

2. Reliability: Consistency in your actions and words fosters reliability. If you promise to deliver information by a certain date, do it. Reliability cements the foundation laid by credibility.

3. Relationship: While building relationships is crucial, it’s often where sales professionals over-index. Relationships matter, but without the first two components, they can fall flat, particularly with senior executives or seasoned procurement specialists.

4. Self-Interest: Perhaps the most crucial element is minimizing perceived self-interest. If you appear overly self-interested, trust diminishes rapidly. Transparency and mutual benefit must guide your actions.

Lander aptly notes, “Salespeople would over-index on the relationship piece. Whereas actually, if you look at very senior people in organizations that you’re trying to negotiate with and you want to build trust, one of the most important things is credibility.”

Profiles of Effective Negotiators

From Lander’s study involving 200 salespeople, four distinct profiles emerged: the Analyzer, the Preparer, the Commander, and the Trust Builder. Among these, the Trust Builder consistently outperforms the others. The Trust Builder’s traits include empathetic listening, flexibility, problem solving, and a focus on mutually beneficial outcomes. These characteristics are instrumental in achieving higher win rates, business objectives, and client renewals.

As Kwame Christian reflects, “Trust is merely a positive bias. We can create trust in other people, but it gives you this benefit in so many different ways.”

Engaging with Emotionally Detached Counterparts

Building trust with emotionally detached procurement professionals is challenging. Procurement teams are trained to be detached to maintain objectivity and prevent getting too invested in the negotiation’s outcome. Lander provides a strategy: begin with small, consistent actions that signal collaboration and transparency.

Initiate the process with pre-negotiation emails, document exchanges, and discussions on objective criteria. This groundwork demonstrates your intent to collaborate. If the procurement team is unresponsive or overly commanding, you might need to reconsider the potential profitability and feasibility of the deal.

It’s essential to recognize patterns of behavior. Lander stresses the importance of making strategic decisions based on these signals. If interactions are not progressing, it may indicate that the deal is unlikely to be profitable or successful. This assessment empowers you to prioritize negotiations that align better with your strategic goals and where mutual beneficial outcomes are more plausible.

The Kraljic Matrix: A Strategic Tool

A lesser-known yet powerful tool in the negotiation arsenal is the Kraljic Matrix. This matrix helps sales professionals understand their position in the negotiation landscape based on two axes: profit impact on the buyer’s business and scarcity of supply.

• High Profit Impact & Rare Supply: If you find yourself in the top-right quadrant (high profit impact and rare supply), the procurement team is likely to engage collaboratively. They have a vested interest in securing your product or service, and they will be more open to problem-solving and co-creating solutions.
• Low Profit Impact & Abundant Supply: Conversely, if your offering falls into the bottom-left quadrant (low profit impact and abundant supply), expect a more transactional, volume-based negotiation approach. Understanding this positioning helps you tailor your strategy and set realistic expectations.

Utilizing the Kraljic Matrix allows you to ascertain where you stand and anticipate the type of negotiation behavior you might encounter. This strategic awareness ensures you are not blindsided and can allocate your efforts accordingly.

Conclusion: Trust as Both Sword and Shield

Christian eloquently sums up the dual nature of trust in negotiations: “We often think about trust as a mechanism to advance our interest… but I never thought about trust as a shield, too. It protects us from our own mistakes.”

In high-stakes negotiations, mistakes are inevitable. However, a solid foundation of trust can absorb the impact of these mistakes, allowing room for recovery and maintaining the relationship’s integrity. Trust does not only propel us forward but also offers a safety net, ensuring that our missteps do not lead to catastrophic failures.

Building trust is not an overnight endeavor. It demands consistent effort, credibility, reliability, and an altruistic approach. Whether dealing with emotionally detached procurement professionals or navigating the complexities outlined by the Kraljic Matrix, trust remains the cornerstone of successful negotiations.